Investment Expert Temitope Ijibadejo speaks on way forward for Nigeria stock market

Nigeria’s capital market witnessed perhaps its most bruising day in recent memory, with the NGX losing a staggering ₦4.61 trillion in one trading session. To many investors, this felt like a financial earthquake: sudden, violent, and disorienting.

But the tremor did not originate from economic policy or domestic missteps alone; instead, its spark came from across the Atlantic. Global markets were still digesting rising geopolitical tensions when the U.S. President Donald Trump added fresh fuel – a bold, controversial warning that if the current government did not act, he would “come to Nigeria to stop the spread of the killing of Christians.”

Given the characteristic bluntness with which the comment was delivered, it predictably ricocheted through international media and lent a new layer of political uncertainty around Nigeria-one that investors did not take lightly.

Almost instantly, fear surged. International investors began pricing in potential instability, while local traders reacted with equal alarm. The result was a sharp, unforgiving sell-off that wiped out trillions in value, leaving Nigeria reeling and global observers shocked at the speed of the downturn.

To make sense of what this means and where Nigeria goes from here, we sat with respected investment strategist and Forex expert, Temitope Ijibadejo, who provided a calm but incisive breakdown of the chaos and the way forward.

Q: Nigeria just suffered a calamitous loss of three stock markets combined, worth ₦4.61 trillion. In your mind, what exactly caused such a big crash?

Ijibadejo: It was the perfect illustration of how closely tied capital markets are to political signals — especially when they come from influential global players. Trump’s remark was not something to gloss over; it suggested foreign meddling and governance turmoil. Investors respond very quickly to anything that makes it look like there will be political uncertainty.

Nigeria was already grappling with tight liquidity, elevated interest rates and cautious sentiment. So as soon as a world leader hinted that Nigeria might be on the brink of humanitarian or political disaster, the market froze. It wasn’t just an emotional sell-off — it was a structural one. We simply don’t have the scale of market to absorb that kind of shock easily. So everything amplified.

Q: Some Nigerians thought the market overreacted. Should a remark from one foreign politician matter so much?

Ijibadejo: Ideally? No. In a more robust, deeper and diverse market, a comment — even as incendiary as Trump’s — would create waves but not tsunamis. But Nigeria’s marketplace is delicate. Foreign investors have a lot of power, and when they move, the locals tend to follow.

It was not the statement per se that raised eyebrows, but the underlying message that we still lack sufficient internal resilience. Until we develop our local investor base and bolster institutions, the global part will still shake us out of proportion.

Q: Would you consider it more a global-triggered panic or a domestic one that got amplified?

Ijibadejo: It was global at first but then Nigeria took it up. The international investors were aware of the geopolitical impact of Trump’s warning and reacted accordingly. The domestic investors, on the other hand, were simply counting the cost of what such instability could bring.

The smaller, non-robust institutional investors like small and non-existent pension funds forced the panic to move quickly. Hence, the spark was outside, but the fire was on our side.

Q: Lots of retail investors are really in a tough spot now. What do you think should be their takeaway from this situation in the context of the overall market?

Ijibadejo: The most crucial factor is perspective. Market crashes are dramatic but not always permanent. Several key stocks still have solid fundamentals. What we went through was fear-driven, not value-driven.

For careful long-term investors, this might actually be an entry point. Great companies are now available at prices that may not last long. The worst thing retail investors can do is panic and sell at the bottom. Throughout history, those who keep their discipline recover faster than those who exit in panic.

Q: Government and regulators’ role? What direction ought they be going now?

Ijibadejo: Three very important aspects:
● Communicate quickly and unambiguously: In a shaky market, silence is harmful. The government has to convince investors that Nigeria is stable and dynamic.
● Enhance liquidity corridors: Make sure that trading systems, market-making activities, and settlements run uninterrupted.
● Increase local participation: Not sitting on the sidelines, we need pension funds, mutual funds, institutional players purchasing during crises.

The message has to be: Nigeria is forward-looking, reactive, and steady.

Q: Looking forward, what’s the sensible route to rebuild trust?

Ijibadejo: Investors regain confidence when they detect regular, predictable indications—not just oral assurances. Nigeria has to show policy consistency, improve rule of law, and expand capital market offerings.

Additional listings. Increased liquidity. More institutional involvement. Greater openness. Should we treat this as a pivotal point, the market may come out stronger. I’m still hopeful. Nigeria still has economic potential; this shock does not affect our long-run course.

In addition to its size, the ₦4.61 trillion market meltdown will be remembered for the warning it sent: Nigerian markets are too vulnerable, too naive, and too sensitive to outside political commotion.

However, as Temitope Ijibadejo points out, crises frequently highlight the precise flaws that need to be fixed. This historic collapse could become more than just a national panic if Nigeria decides to take decisive action, boosting confidence, expanding the market, and reacting openly.

It might serve as the long-needed impetus for creating the robust, cutting-edge financial system that Nigeria so richly deserves.